FSR GPS: When Can An Account Statement Be Misleading Or Deceptive?

Many of our clients are grappling with the vexed issue of whether information contained in investment and insurance disclosures constitutes misleading or deceptive conduct, where the information is affected by transactional errors.

For example:

• where an account charge has been incorrectly made or applied; or
• an error has been made in the crediting of an investment return,

such that the error carries through to the reporting of the client's benefits or account balance. Most typically, we see this issue arise where a client's account balance is affected by an error and disclosure of the account balance or relevant charges/returns is provided in an annual (or other periodic) statement.